Raymond plans to to list demerged Lifestyle business next week
04 Sep 2024
Raymond Group on Monday announced plans to list the demerged entity Raymond Lifestyle on the stock exchanges sometime next week.
The textile major said that after completion of the demerger process, the group will have three listed entities - Raymond Limited, Raymond Lifestyle Limited and Raymond Realty Limited.
The company also said that its realty business will be spinned off as Raymond Realty Limited, after obtaining statutory approvals, adding that it has already applied for the grant of NOC under Regulation 37 with both stock exchanges.
Raymond last year sold its entire consumer products business (except for the sexual wellness business) to Godrej Consumer Products for Rs2,82,500 on a slump sale basis.
The board of directors of the company at its meeting on 25 April 2023, changed the object clause of the company to include textiles and apparels manufacturing, including other ancillary business in its Lifestyles portfolio.
Subsequently, the board, at its meeting on 27 April last year, approved a composite scheme of amalgamation and arrangement between the company and Ray Global Consumer Trading Ltd under which the lifestyle business of Raymond Ltd along with its strategic investment in Ray Global will be demerged to form a new entity that will carry on the textile and apparels business.
Group chairman Gautam Singhania, meanwhile, said Raymond’s business inquiries have surged following the crisis in Bangladesh.
Raymond expects to double the earnings (EBITDA) from its lifestyle business to over Rs2,000 crore by FY28 with a 12-15 per cent annual growth in sales.
With over 300 new stores added in the next 3 years and a differentiated design for all occasions, high quality offerings at affordable pricing, strong presence in wedding category, Raymond Lifestyle will also aim at a 6-7 per cent share in the fast growing Men’s-wear wedding market by 2027
With over 300 new stores added in the next 3 years and a differentiated design for all occasions, high quality offerings at affordable pricing, strong presence in wedding category.
The news booster shares of Raymond Group shares, which gained 7.9 per cent to hit an intra day high of Rs2,180.85, before closing 5.14 per cent higher at Rs2,111.20 apiece on the BSE.
